NHS outsourcing shows significant savings, lobby group claims

NHS data shows commissioners save significant amounts on support services when they buy most of their hotel and estates management from the private sector, a lobby group for the outsourcing industry has claimed.

A report from the Business Services Association compares the costs of primary care trusts which have outsourced more than three-quarters of these services with the average costs of support services to the NHS.

It found, over 2008-09 and 2009-10, those PCTs spent an average of £697,417 on cleaning services – 13.6 per cent below the NHS average of £806,322.

Their average per item cost for linen and laundry services was 41p, compared with an NHS average of 57p; their average per-patient per-day spend on catering was £7.58, compared with an NHS average of £8.25; and their average annual grounds maintenance bill was £39,622, compared with an NHS average of £46,672.

The report used statistics compiled by the NHS Information Centre.

An association spokesperson said: “Only 38 per cent of NHS support services are currently outsourced, with support services which are not outsourced accounting for £4bn per year.

“Outsourcing support services frequently saves over 25 per cent, which suggests possible savings of over £1bn through outsourcing the remainder of NHS support services.”

But Unison assistant general secretary Karen Jennings said: “These areas [in the report] are probably among the poorest paid in the NHS. And not only do they attack their terms and conditions, they also actually have fewer staff.”

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